Worldwide cannabis sales are expected to grow at a 22% compounded annual growth rate (CAGR) between 2020 and 2025.
That's according to a new forecast from BDSA (formerly BDS Analytics).
The firm predicts:
- U.S. cannabis sales should reach $34.5 billion by 2025, increasing at an 18% CAGR.
- Canadian sales will top $6 billion, rising at a 26% CAGR.
- The rest of world will see sales increase to $6.5 billion, at a 45% CAGR.
- Mexico, Germany and the U.K. will see significant levels of growth.
“We anticipate the cannabis market to continue and accelerate its dynamic growth, as more states legalize sales, other states relax restrictions and consumer acceptance increases,” said Roy Bingham, co-founder and Executive Chairman of BDSA. “To take advantage of these opportunities, it’s important for producers of cannabis products, manufacturers considering development of cannabis products and retailers work with the most accurate and timely data to generate the most effective market strategies.”
Regarding COVID-19, the report highlights the tremendously disparate impact the pandemic has had on cannabis sales across the U.S. While states like Colorado, Illinois, Michigan, New Mexico, Oklahoma, and Oregon, saw significant increases, Nevada witnessed a massive drop.
Accelerated adoption of cannabis products by consumers has outweighed downward pricing pressures resulting from legalization and greater consumer acceptance of cannabis products, the report concludes.
Lead image by Ilona Szentivanyi. Copyright: Benzinga.